North Dakota: Proposed measure would allow for state-owned casinos

House Majority Leader Al Carlson, R-Fargo, is the primary sponsor of House Concurrent Resolution 3033, which would ask voters whether to amend the state Constitution allow the Legislature to authorize casinos. The question would go to voters in the 2018 primary election.

Currently, the state Constitution prevents the Legislature from authorizing “any game of chance, lottery, or gift enterprises,” but it allows the state to join a multi-state lottery and authorize charitable gaming. Casinos are allowed on the tribal land in the state through federal law, however.

Carlson said Wednesday, March 1, that voters should have the opportunity to weigh in on gaming.

“I think the voters have shown us that they’re much more open-minded after they passed the (medical) marijuana bill,” he said.

But Rep. Marvin Nelson, D-Rolla, sees the proposal as providing competition against tribal casinos. His district includes the Turtle Mountain Band of Chippewa Indian Reservation, which has the Sky Dancer Casino.

“We could have put gambling into the cities years ago through cooperation with the tribes, but that was a choice that was made not to do that,” Nelson said. “So now to come and short-stop them seems mean-spirited.”

Carlson said he expects the tribes won’t care for the idea.

“But the point is my job is to look at the state policy,” he said.

While states may eye gaming as a way to boost revenue — North Dakota is dealing with its own budget woes this session — gambling only represents between 2 and 2.5 percent of most state budgets, according to a December article for the National Conference of State Legislatures.

Under the proposed resolution, the Legislature could transfer casino net profits to the state general fund. Carlson said he’ll prepare an amendment to specify that revenue would be sent to behavioral health services and tax relief.

“It’s a revenue booster, but … we’re gaming all over the state,” he said, pointing to blackjack tables at bars and the lottery. “You can argue whether or not we should open it up or not, but the proper way is to open it up to governance, where the state has some control over it.”

Under the resolution, a casino could not be located within five miles of a city with a population of more than 5,000 or within 20 miles of a Native American reservation boundary. It also establishes a Casino Gaming Commission with seven members appointed by the governor, state auditor, attorney general and legislative leadership from both parties.

Henry LaDue, chairman of the Trenton Indian Service Area, said the addition of state-owned casinos would have a big impact on the tribes.

“I think it’d be devastating, myself,” LaDue said.

The Grand Treasure Casino, which is going through an expansion in northwest North Dakota, is a major source of revenue and employment for the tribe, a branch of the Turtle Mountain Band of Chippewa, LaDue said.

Sen. Richard Marcellais, D-Belcourt, who worked as the assistant general manager at Sky Dancer Casino before becoming the Turtle Mountain chairman, worries about the criminal activity the casinos could attract.

“It brought it into Vegas,” he said. “We’re just a smaller Vegas.”